Audit of the accounts of a company is a mandatory process of verification of the book of accounts by an independent Chartered Accountant.
Auditing of the accounts of a company gives the regulators and shareholders of the company a fair impression of the existing financial affairs of the concerned company.
As per the Companies Act, it is mandatory for private limited, one person and limited companies to appoint a professional auditor and conduct an audit of the accounts of the company annually.
Here is a brief on what the audit report is all about after the completion of an audit of a company.
Also Read: Appointment of Auditor of a Company
After the audit of a company is done, the professional auditor generates an audit report which consists of the following:
Related: Who can be appointed as statutory auditor to a company
After conducting an audit for a company, the auditor is supposed to prepare an audit report or audit opinion. The audit opinion is a crucial part of the audit report and there are four major types of audit opinion as per the accounting standards. They are as follows: